If consumers find that there are substantial transaction costs to purchasing a product,then
A)overall consumer demand is greater at each price.
B)overall consumer demand is the same at each price.
C)overall consumer demand is less at each price.
D)equilibrium price and quantity both fall.

Question

Quizplus · Accepted Answer

When consumers face high transaction costs associated with purchasing a product, they are more likely to be deterred from making a purchase, resulting in lower overall consumer demand at each price. Therefore, choice C is the best option.

If Consumers Find That There Are Substantial Transaction Costs to Purchasing